NAV Fixed Assets Impairment

anphilip

Hi Everyone,

Have any one of you encounter on NAV Fixed Asset Impairment? One of my client ask me can NAV support FA Impairment? If yes how does the depreciation entries will looks like? Also can someone explain what is FA Impairment.

Thank you

Best regards,
Philip

Chinmoy

Hi Philip,

What I understand is that asset impairment is a sudden decline in the usability of a fixed asset, resulting into the reduction of the book value. This is NOT a regular process, hence probably cannot be mapped with a batch process / periodic activity in NAV. Also, it is a calculation which needs to be done by the Accounting department, depending on a lot of factors, some of which are figures to be drawn from the market conditions. So, I guess, NAV does not have an automated process to do something like this. However, it can definitely be done by passing "write down" entries to the assets to be impaired. Hope this provides some light to the subject. Again, I may not know everything about NAV.. , so lets wait and see if anyone else has got some other views on this subject.

Best regards,

Chn